Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-10 - FINANCIAL TRANSACTIONS  

Division 243 - Limited recourse debt  

Subdivision 243-D - Special provisions  

Operative provisions

SECTION 243-70   Application of Division to companies ceasing to be 100% subsidiary  

243-70(1)  
This section applies to a company if:


(a) the company ceases to be a *100% subsidiary in relation to at least one other company; and


(b) at that time, the company is the debtor for a *limited recourse debt that has not been paid in full by the company; and


(c) the creditor's rights under the debt are transferred or assigned to another entity.

243-70(2)  
If this section applies, this Division applies as if the debt were terminated, and refinanced with *non-arm's length limited recourse debt, at the time the company ceased to be a *100% subsidiary of that other company.


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